Stock Analysis on Net

Phillips 66 (NYSE:PSX)

This company has been moved to the archive! The financial data has not been updated since February 21, 2020.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Phillips 66, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Phillips 66 3,076 5,595 5,106 1,555 4,227
Net income attributable to noncontrolling interests 301 278 142 89 53
Net noncash charges 2,261 1,973 (1,662) 818 1,654
Working capital adjustments (830) (273) 62 501 (221)
Net cash provided by operating activities 4,808 7,573 3,648 2,963 5,713
Cash payments, interest, net of tax1 340 369 299 233 195
Interest capitalized, net of tax2 61 13 11 61 75
Capital expenditures and investments (3,873) (2,639) (1,832) (2,844) (5,764)
Free cash flow to the firm (FCFF) 1,336 5,317 2,126 413 219

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Phillips 66 suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Phillips 66 FCFF increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Interest Paid, Net of Tax

Phillips 66, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR1 20.20% 20.60% 28.90% 25.00% 29.20%
Interest Paid, Net of Tax
Cash payments, interest, before tax 426 465 421 311 275
Less: Cash payments, interest, tax2 86 96 122 78 80
Cash payments, interest, net of tax 340 369 299 233 195
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 77 17 15 81 106
Less: Interest capitalized, tax3 16 4 4 20 31
Interest capitalized, net of tax 61 13 11 61 75

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 See details »

2 2019 Calculation
Cash payments, interest, tax = Cash payments, interest × EITR
= 426 × 20.20% = 86

3 2019 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 77 × 20.20% = 16


Enterprise Value to FCFF Ratio, Current

Phillips 66, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 51,629
Free cash flow to the firm (FCFF) 1,336
Valuation Ratio
EV/FCFF 38.63
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 15.02
ConocoPhillips 17.39
Exxon Mobil Corp. 13.69
Marathon Petroleum Corp. 7.13
Occidental Petroleum Corp. 12.03
Pioneer Natural Resources Co. 17.14
Valero Energy Corp. 7.44
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 36.86
EV/FCFF, Industry
Energy 36.80

Based on: 10-K (reporting date: 2019-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Phillips 66, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 51,629 54,931 55,363 49,493 48,895
Free cash flow to the firm (FCFF)2 1,336 5,317 2,126 413 219
Valuation Ratio
EV/FCFF3 38.63 10.33 26.04 119.84 223.52
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 16.67
ConocoPhillips 13.21
Exxon Mobil Corp. 44.38
Marathon Petroleum Corp. 13.14
Occidental Petroleum Corp. 45.65
Pioneer Natural Resources Co. 173.74
Valero Energy Corp. 9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 21.78
EV/FCFF, Industry
Energy 22.00

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 See details »

2 See details »

3 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 51,629 ÷ 1,336 = 38.63

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Phillips 66 EV/FCFF ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.